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According to people familiar with the matter, Volkswagen will recommend that its shareholders accept a settlement of approximately 10 million euros from the former boss Martin Winterkorn.
The German automaker announced in March that it would Seek damages From Winterkorn, he was in charge of the group before the 2015 diesel emissions scandal.
In this incident, 11 million vehicles were found to have installed software that deceptively tested emissions. To date, Volkswagen has paid more than 32 billion euros in fines and legal fees.
Volkswagen decided to sue Wendern, Who resigned As the CEO, shortly after the scandal was exposed, the law firm Gleiss Lutz submitted a comprehensive report on Dieselgate this year.
The report, commissioned by the Volkswagen Board of Supervisors, concluded that the company’s top management “had been negligent.”
The world’s second-largest automaker subsequently accused Wendern of having known about the existence of illegal software since July 27, 2015, but failed to “clarify its use”.
In addition, Volkswagen stated that the former boss “failed to ensure that the questions raised by the US authorities in this regard were answered truthfully, completely and without delay.”
The Volkswagen Supervisory Board also concluded that the former Audi boss Rupert Steid had violated his duty of prudence, as did the other four managers. Steide denied wrongdoing.
Winterkorn rejected the allegations of wrongdoing. The lawyer acting on his behalf said in March that in the preparation phase of Dieselgate, “he did everything necessary and did not omit anything that might happen… to prevent or minimize the damage caused”.
Last weekend, the Volkswagen Board of Supervisors discussed the settlement agreement with all defendants in March, and these proposals will be presented to shareholders at the company’s annual general meeting next month.
Business Insider first reported 10 million euros in a settlement agreement with Winterkorn. Volkswagen confirmed the decision of the board of supervisors, but declined to comment on the exact number of any settlement.
Winterkorn faces separate charges of fraud and will stand trial in Germany in September this year. He has also been charged in the United States, but is unlikely to be tried there because Germany does not extradite its citizens. He denied the allegations.
Stadler is currently undergoing trial in Munich, and the case will last for several months.
At the meeting, the Volkswagen board also voted to extend the term of Hans Dieter Pötsch, who took over as chairman of the company shortly after the 2015 scandal.
Last year, Volkswagen Agreed to pay a fine of 9 million euros A case was concluded in which Pötsch and current CEO Herbert Diess joined Volkswagen in July 2015, and they themselves were accused of manipulating the market on the eve of the Dieselgate scandal.
German prosecutors accused the two of concealing information about shareholders’ cheating, thereby “illegally affecting the company’s stock price.”
After the scandal was exposed, Volkswagen’s stock price plummeted by more than 40% and its market value evaporated by billions of euros.
The company stated that the allegations against Pötsch and Diess were baseless.
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